May 12, 2023
NCB Financial Group Limited (NCBFG), for the six months ended March 31, 2023, booked a 6% increase in net interest income to total $34.38 billion relative to the $32.38 billion booked the corresponding period in 2022. This increase can be attributed to growth in their loans and investments portfolios and increased transaction volumes. Interest income, for the period under review, rose to $51.95 billion compared to $44.51 billion in 2022, while interest expense amounted to $17.57 billion relative to $12.13 billion for the corresponding period in 2022.
Net fees and commission income amounted to $13.74 billion, an increase of 6% compared with the $12.95 billion booked for the six months ended March 31, 2022.
Net results from banking and investment activities, for the six months ended March 31, 2023, increased marginally by 0.18% to a total of $53.51 billion (2022: $53.41 billion).
Net results from insurance activities for the six months ended March 31, 2023 fell by 52% to $7.70 billion (2022: $15.93 billion). The segment recorded declines in premium income in addition to increased net insurance costs and higher commission and selling expenses due to sales activities. Additionally, there were increased health claim expenses coupled with a reduction in reinsurance claim benefits owing to a large general insurance claim in the prior year which was reinsured resulting in a higher reinsurer’s share of the claim.
Total operating expenses for the six months amounted to $51.39 billion, a decline of $342 million compared to the $51.73 billion reported for the six months ended March 31, 2022. “We are pursuing various cost optimization measures as we combat the effects of the inflationary pressures and margin compression due to increased interest rates,” according to Management. As a result, lower professional and consultancy charges were recorded.
Operating profit for the six months ended March 31, 2023, fell 44% to total $9.82 billion (2022: $17.61 billion).
Net profit for the six months ended March 31, 2023, fell by approximately 59% to $6.34 billion (2022: $15.29 billion).
Net profit attributable to shareholders closed at $4.23 billion for the six months ended March 31, 2023 relative to $10.43 billion in 2022.
Earnings per share (EPS) for the six months totaled $1.71 relative to $4.23 booked for the comparable period of 2022. The twelve months earnings per share amounted to $8.56. The number of shares used in our calculations amounted to 2,466,762,828 units. NCBFG stock price last traded at $74.98 on May 11, 2023 with a corresponding P/E of 8.76x.
Balance Sheet at a glance:
Total Assets increased to $2.14 trillion as at March 31, 2023 relative to $2.06 trillion booked as at March 31, 2022. This increase stemmed mainly from the growth in ‘Loans and Advances’ which closed at $595.97 billion (2022: $555.89 billion). Management noted, “The growth in the asset base was primarily due to increased loans and investment securities. The growth was mainly funded by increased obligations under securitization arrangements, other borrowed funds, deposits, and amounts due to banks.”
‘Equity attributable to shareholders of the parent’ as at March 31, 2023 stood at $176.26 billion relative to $156.54 billion as at March 31, 2022. This resulted in book value per share of $71.45 (2022: $63.46).
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